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In this segment, Sky Morton discusses copyright transfers under U.S. law, likening the concept to a "baloney theory," where copyright can be divided into many portions. Each time exclusive rights are transferred, an interest in the copyright is given away. For example, granting someone the exclusive right to exploit a video in a specific location for a certain period represents transferring a piece of this 'baloney.' It's important to differentiate between exclusive rights, which require a written and signed agreement, and non-exclusive rights, which are licenses. Owning copyright means retaining all rights that have not been granted to others.